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by half. they have been losing ground to samsung others in the smartphone market. apple has not commented on the report. >> the legal maneuvering in washington is being watched very closely in sacramento. >> when governor brown announced that his 2013 budget showed a surplus, many were surprised. today taylor stood by a report of a $2 billion deficit, but added. >> the budget is in balance. >> reporter: the governor's plan shows fiscal discipline. >> we think he should be commended for the plan that he's put before the legislature. >> living within our means, paying town debt, and strengthening education are the right policy choices for california, and we're pleased that the analyst agrees with the governor's assessment. the biggest risk to our forecast or the analysts forecastcom could come as early as next months, and that's from washington d.c. and what the federal government chooses to do or not to do regarding the debt ceiling. >> reporter: he said if washington fails to act on the debt creel, the national economy could dip, throwing all of the numbers off. >> that's going to have
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